313_AssignmentGuidelines_Finance1

313_AssignmentGuidelines_Finance1 - Cash flow statement o...

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Management 313 Feasibility Analysis and Business Planning Fall 2010 Group Assignments Guidelines Due day: Nov 16 th (Tuesday), 3:30pm Finance Assignment: Prepare a paper (double space and no length limit) with a financial plan for the new business. T he tables should be in such a format that is easy to read, like the tables in “Chapter 10: Financial Projections” in the reading material. You will get 10 points reduced if you break this rule. The requirements for this part of the assignment are: Assumptions Sheet (please refer to Figure 10-2, Chapter 10, in the reading material). Please compare your critical ratios with the industrial average ones by referring to the numbers in the books such as “Dun & Bradstreet: Industry Norms & Key Business Ratios” and “Troy, Almanac of Business and Industrial Financial Ratios.” (10 points) Income statement o Monthly Pro Forma income statement for the first year. (10 points) o Yearly Pro Forma income statement for the second to the fifth year. (5 points)
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Unformatted text preview: Cash flow statement o Monthly Pro Forma cash flow statement for the first year. (10 points) o Yearly Pro Forma cash flow statement for the second to the fifth year. (5 points) Breakeven analysis o If your want to breakeven at the end of first year, what will be the volume of your business? (10 points) o When do you think you can breakeven, based on your sales estimation? Provide first or second hand of evidence if necessary. (10 points) Initial required investment o How much do you need? (10 points) o Please break down the initial required investment to show the budget. (10 points) Likely sources of start-up money o Who will you approach for investment? Why will you approach them? If any, who have shown any interests in the company? (10 points) o For each of the perspective investors, explain how much you wish they can invest, what you can offer (the number of shares, interest rate, amount of return, time of return, etc.). (10 points)...
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